Skip to main content

About this Show

Mad Money

News/Business. (2013)

NETWORK

DURATION
01:00:00

RATING

SCANNED IN
San Francisco, CA, USA

SOURCE
Comcast Cable

TUNER
Virtual Ch. 58 (CNBC)

VIDEO CODEC
mpeg2video

AUDIO CODEC
ac3

PIXEL WIDTH
704

PIXEL HEIGHT
480

TOPIC FREQUENCY

Cramer 10, U.s. 9, California 7, China 6, Us 6, Europe 5, Alkermes 5, Barry 4, Fda 3, Apple 3, Bp 3, Macy 2, Spiriva 2, Pfizer 2, Geico 2, New York 2, Italy 2, Spain 2, America 2, Berry 2,
Borrow a DVD
of this show
  CNBC    Mad Money    News/Business.  (2013)  

    February 27, 2013
    11:00 - 12:00am EST  

11:00pm
transit fares we help collect each year. no? oh, right. you're thinking of the 1.6 million daily customer care interactions xerox handles. or the 900 million health insurance claims we process. so, it's no surprise to you that companies depend on today's xerox for services that simplify how work gets done. which is...pretty much what we've always stood for. with xerox, you're ready for real business. you know it can be hard to lbreathe, and how that feels.e, what we've always stood for. copd includes chronic bronchitis and emphysema.
11:01pm
spiriva helps control my copd symptoms by keeping my airways open for 24 hours. plus, it reduces copd flare-ups. spiriva is the only once-daily inhaled copd maintenance treatment that does both. spiriva handihaler tiotropium bromide inhalation powder does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. other side effects include dry mouth and constipation. nothing can reverse copd. spiriva helps me breathe better. (blowing sound) ask your doctor about spiriva. >> i'm jim cramer, welcome to my world.
11:02pm
>> you need to get in the game. firms are going to go out of business and he's nuts, they are nuts, they know nothing. i always like to say there is a bull market somewhere. "mad money," you can't afford to miss it. hey, i'm cramer, welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to help you make some money. my job is to educate and coach you, teach you about how all of this works, call me at 1-800-743-cnbc. when i used to teach selling stocks at goldman sachs, i told trainees you have to be ready to rebut the objections. expect challenges and meet them with good answers that put to rest the worries, concerns that would keep you from buying the stocks you want them to own. today the market put on a virtual rebuttal clinic and it led to a terrific day where the dow soared 179 points and the
11:03pm
nasdaq surged 1.04%, as every important objection was silenced. no wonder we're closing in on those all-time highs. what are the negative presumptions that got rebutted? the u.s. economy must be slowing. right? i mean, on account of all that negative stuff people keep talking about. guess what. today made the notion seem fanciful. we got good macro, meaning we saw durable goods data, showing demand for machinery rose the most in two years. how does that happen? it comes on top of the recent increase in container board, the corrugated box stuff that your packages come in, fedex and stuff. one of the most sensitive economic indicators out there and then a $50 increase in sheet steel, it fell from a match by ak steel. and you cannot put through container board and steel price hikes in a weak economy. you would say, no, no. i need more evidence. take a look at transports,
11:04pm
incredibly sensitive to commerce. today they rallied the most since july last year. jb hunt, almost up four points, 52-week high. i don't talk about the truckers enough, my bad. i spend too much time on transporters like ups. a name my charitable trust bought more of. and fedex. but the truckers are a fabulous indicator of economy strength or weakness. jb hunt, saying all systems go. and cramer fave kansas city southern, ksu, $103, all-time record and it may be in talks to build a major hub to bring domestic oil to texas refineries. they're shipping by train. and it is so important to get an outlet for the domestic oil, and ksu is the preferred way to play it. a terrific stock because of the smoking hot mexican trunk line. how do we know this isn't a transport blip? would you see companies make
11:05pm
truck engines and components for trucks like cummins, $2.39 and remarkable runs all, nowhere near as amazing as boeing. the supposedly hobbled pitiful helpless giant maker of planes that isn't supposed to be able to fly any time soon, if you read the press reports. why the heck is it 66 cents from the 52-week high, how about because they place huge orders with the company, because it may be, despite what the press reports you hear and see the finest manufacturer in the world. they will fix this problem faster than anyone believes possible. that abundance of orders makes sense given that the airlines are the most solvent i have ever seen them and i think -- get this. stop trading for a moment. i think united continental, delta, and u.s. air are all buy, buy, buy. that's right. screaming buy. did i just recommend three airline stocks? you bet i did. just like the rental car companies, which i always
11:06pm
despised because they used to compete against others so aggressively, and consolidating to a slap happy oligopoly, for the first time airlines are doing so too. i like the pending u.s. airways amr combination. a blessedly anti competitive home run. unless, of course, you are a frequent flier. you are still worried. still worried, i get that. this time about the possibility that italy could cause ripples to the banking system because of the interconnectedness of the financials. it spell-checked okay. didn't that cause us to be down 200 points on monday? i've got a big rebuttal. jpmorgan. a truly international bank that ran 1.68 after an analyst meeting. this country is not to be derailed by anything happening in italy. yeah. at last we see it for what it is. italian politics as opposed to our politicians won't bring down
11:07pm
our banks anymore, which means we should stop focusing on their errant elections, if you don't mind. it's a mistake to do so. that's what the pep in jpm stock is saying. jpmorgan, let's say it took care of its nasty european whale problem, stop sweat sweating the jpm program. but captain jamie dimon got that moby sucker. how about china? how about china? another reason we got crushed last week was china. aren't we petrified that china is stalled? break out the handbook here, and china stalled, that means commodities stalled, which means the strength is chimerical. i told you we want to listen to michael sutherland, the biggest pure play in mining equipment. he said china is coming on strong, a demand for commodities around the globe. another issue neutered by
11:08pm
today's evidence. but isn't the consumer -- i got the whole litany, isn't the consumer tapped out by higher gasoline prices? by the end of the payroll tax holiday, by increased taxes for the rich. by the bad weather lately. i don't know, but our newly created gatsby index was on fire today. so were dollar stores. dollar tree, and great gatsby nick caraway. and how about the all-time high, home depot. three-point jump macy's moving up another buck and walmart continuing to run, despite endless attempts by bears portraying the company having a dim view of the future. something i'll discuss later in the show, saying jcpenney stinks, oh, i threw that out there, more at the end of the show. why did darden zoom higher?
11:09pm
the parent of chili's goes up a buck? and great chicken burrito at cbc, opened up the whole studio, a big chipotle bar, it was fabulous. do you think you get these kinds of moves in stocks when the people at home bemoaning the stuff they better be bemoaning? woe is me, you get the check this time. isn't housing peaking? remember toll brothers? i say look out. and new cramer speculative fave radiant. priced 33 million shares at 8 bucks today and managed to close at $8.45. this one goes much higher. much, much higher, the kind of offering that has added to earnings at the company fixes its balance sheet. how on earth can i recommend a housing stock when we're in
11:10pm
an any day situation with the fed? when the fed will stop keeping rates down and take away the punch bowl as last month's fed minutes showed? that's bad news for you there. the bears. the fed chief spoke again on the hill. if anything, more aggressive on the bond buying front. guy is spiking the punch bowl. and we'll be blind for three days. talk about a blown call. sure, you say, all right, and don't get too confident, the sequestration is coming. that's got to be brutal, right? how about the fact that huntington ingals, hii, reported a fantastic quarter today, $6 billion in new business in 2012, a billion awarded last quarter. just off its 52-week high. and l3 communications, lockheed martin, among the strongest stocks in today's session. so much for sequestration worries. if this is what happens when we
11:11pm
sequester and slash the military budget i say let's go sequester all the time. and on a day like today, they become gentle bens and lick their boo-boos. today's robust rally and blissful session if you are long, rebutted the negative presumptions head on and did so in the kind of spectacular fashion that reminds you just how wrong the panickers were when they fled this market just seven days ago. >> the house of pain. laurine in california. >> caller: booyah from san francisco. thank you for sharing the vast knowledge of the ins and outs of stock trading with us. will we see a greater future for netflix with the new capabilities they have coming down the pipeline, such as streamlining the search options?
11:12pm
>> i got to tell you, if apple said they were going to buy netflix for cash. apple is $4.44. probably some bad luck sign, down 4 bucks. apple would be $550, netflix would be at $250. netflix is doing fabulous with the people at reed hastings doing a fabulous job. stick with netflix. let's go to mike in new york. >> caller: booyah, mr. cramer. thank you for giving me a shoutout during the adt segment last week. i was watching with my wife at the time and she was very impressed with me, so i need to thank you for that. >> i was thinking of you the whole piece. >> caller: i bought coach back in mid-january. >> why, mike? >> caller: i got in just under $52, and it just plummeted from $62.
11:13pm
i was hoping make a quick buck in a few days. and you know, in and out, flip it real quick and it didn't quite work. the stock just kept on dropping on me. >> it did that most certainly. too late to sell, mike. >> i was about to give up. >> that website says it's going to be some bid. look. too low to sell, but you're watching the show, you got the adt shoutout which somehow was related to you, i haven't figured that out. why not buy adt instead of coach? that was the play. coach, no. adt, yes. al in new jersey. al. >> caller: yes, jim. a big philadelphia booyah to you. >> done your way. making some big changes. we managed to get alex smith -- no, that's andy reid. go ahead. >> caller: i want to check in 3-d printing, the biggest stock
11:14pm
going next to google and apple. should i invest or not? the stock rebounded slightly. >> it's trading like apple. look this is a market that's reverted to the fundamentals, and the fundamentals say that stock is too expensive. when there is a lot of other -- look, honestly, google, some guy raised his price target. but $800, google is cheaper than the triple d right here. there is always a reason to keep you out of stocks, but right now, the bears aren't always right and why didn't they come on and say they don't like the market? they are in hiding, they are in hibernation. "mad money" will be right back. >> coming up, approved for takeoff? ariad pharmaceuticals anti cancer drug ahead of the fda.
11:15pm
is now the time to get behind this company? cramer finds out when he talks to its ceo. and, later, final frontier? the latest sight of america's energy revolution is the golden coast of california. new finds are churning out black gold. after making a big acquisition, could it be right for the pickings? >> and alchemy. the guidance raised for the third time. don't miss cramer's exclusive with its ceo, all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer #madtweets.
11:16pm
send an e-mail to madmoney@cnbc.com or call 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.
11:17pm
11:18pm
11:19pm
tonight i want to talk about a speculative biotech stock that has recently gone from a purely speculative prospect to a company with a real product on the market that could be on the road to earning real profits. aria pharmaceutical. a global commercial oncology company that this past december received fda approval for their very first drug which treats two rare blood and bone marrow diseases. chronic myeloid leukemia and philadelphia chromosome lymphoblastic leukemia. these are orphan diseases. if you have these conditions and none of the other drugs in the market work with you, that's a 20% or 30% of the population,
11:20pm
you could die if you don't take this medicine. it's not like that's an unreasonable price. it's run up 33% since we spoke to the ceo in june. since then, the story changed dramatically. back then, it's about getting the drug approved. now it's about developing new treatments in the pipeline. let's talk with dr. harvey let's talk with dr. harvey berger and find out more about what's next for his company. welcome back to "mad money." >> hey, jim. >> you made a bold call, i thought at the time it would be approved. you say it's only been five years that you had to work on this. that somehow that's not a long period of time. >> well, five years from the first time we started clinical trials to approval is very, very short for any new medicine, and frequently in the past it took ten years easily. five years really speaks a lot to how this new medicine has made a difference in patients with various types of leukemias.
11:21pm
>> you put numbers out. the u.s. launch december 2012. this could be a billion dollar drug in five years. you've been selling it for seven weeks now. is that too pie in the sky? >> we really don't think so, we've looked hard at how the drug is being used today and how we envision it will be used in the future, as its applications and use grows. we really believe that in a five year period, iclusig can grow to be an $800 million product and growing to a billion in global revenues. >> doesn't it have to become a first-line treatment for many more people than it is currently? >> certainly. the current focus of the trials and approval is in patients that
11:22pm
have failed other medicines for leukemia. to get to the billion dollar plus level without question, it will need to be used in the newly diagnosed cml patient. we have a big trial currently looking specifically at that. >> okay. when i know asco comes up in the fall, will we have some information about that big trial then or is it too soon? >> the trial started last year. we will have information about iclusig and other medicines, but we won't have results on the epic trial, the trial for newly diagnosed patients until best case next year. >> there are other drugs on the market from the literature is clear, i don't think they are as effective as yours. what is the sales pitch to convince doctors? you have a big sales force. you're an up and running commercial operation. have you a big sales force. what do you tell the doctor, given that they have established drugs they might be using? >> i think that's the challenge is the sales representatives, the account executives going to talk to physicians.
11:23pm
what really will drive the use of iclusig are the clinical data that show the efficacy and safety of this new medicine and how long it's been shown to be useful in patients who have failed the other medicines, failed the other drugs and virtually every patient eventually fails the other medicines for cml. >> really? virtually every patient? >> yes. >> pfizer is up. they are a big company. how do you compete? >> pfizer has the newest from among the large companies, the two leaders in the field are bristol meyers squibb and novartis. we think we have an advantage. our entire sales and commercial organization is focused on iclusig. we really do believe we have a new medicine that will make a real difference in the lives of cancer patients. >> a lot of viewers are worried about europe. they think europe is in terrible shape. a lot of literature says are you going into europe.
11:24pm
$115,000, is that something the europeans thought was okay, but now there's not enough money? >> pricing in europe is different than the pricing in the u.s. without question, the pricing in europe will not be the same as the u.s., but it will be a premium to the other medicines that are available, because of the clinical results. >> now, one last thing, and i don't want to get visions in people's heads, we have seen a couple of biotech companies that once they have the drug that's selling, they have been snapped up. you have a chance to build a giant company, but at the same time, your company does not reflect a billion dollars in sales right now. is this something that could happen? i said it's speculative. you have approval. you spend five years, and, you know, they didn't lose that money, but they can buy you and not have to pay a penny of that research? >> well, you know, you build a company, either to be bought, or
11:25pm
you build a company to be a sustained long-term business. we have focused entirely on building a global sustainable business. one of the only biotech companies in the cancer field that discovers new medicine, develops them globally and can commercialize them as well. >> this isn't the only indication. this is much, much bigger or else you wouldn't be using that billion there. >> also, not only iclusig. other medicines in clinical development that are moving into pivotal trials as well. we have really tried to position the company in quite a distinguishable way with capabilities that are quite different than most other companies. >> a man of your word. when you came on, i was very worried this would not be approved. you said it would be. a gutsy move. go read what i did. stay with cramer. thank you.
11:26pm
coming up, final frontier? the latest site of america's energy revolution is the golden coast of california where new finds are beginning to churn up black gold. after making a big acquisition, could linn energy be ripe for the picking? find out in cramer's exclusive. hey. they're coming.
11:27pm
yeah. british. later. sorry. ok...four words... scarecrow in the wind... a baboon... monkey? hot stew saturday!? ronny: hey jimmy, how happy are folks who save hundreds of dollars switching to geico? jimmy: happier than paul revere with a cell phone. ronny: why not? anncr: get happy. get geico. fifteen minutes could save you fifteen percent or more. i don't have to leave my desk and get up and go to the post office anymore. [ male announcer ] with stamps.com you can print real u.s. postage for all your letters and packages. i have exactly the amount of postage i need, the instant i need it. can you print only stamps? no... first class. priority mail. certified. international. and the mail man picks it up. i don't leave the shop anymore. [ male announcer ] get a 4 week trial plus $100 in extras including postage and a digital scale.
11:28pm
go to stamps.com/tv and never go to the post office again. [ engine turns over ] [ male announcer ] we created the luxury crossover and kept turning the page, writing the next chapter for the rx and lexus. this is the pursuit of perfection. otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪ sure, we had another terrific rally today, but after
11:29pm
the vertigo inducing roller coaster act of last week, i don't blame you if you feel a little nervous. this increasingly volatile market has you on edge, time for you to double down on a stock that gives you a sky-high energy yeild. i'm talking about linn energy, the 12th largest independent gas exploration company in the company. it has a big 7.7% yield. if you want to own this for a tax favored account like a 401(k) or i.r.a. you can buy linn co. that's the subsidiary. it doesn't come with the tax baggage. i always tell you to go to your tax accountants in the mlps. linn announced it is buying barry petroleum. this is a brilliant deal. in the first year after the deal closes, expect to to add more than 40 cents to the cash flow power.
11:30pm
we want yield to go higher and to come from a higher distribution. that's what could happen from berry. i think this is huge for linn's future. they have come under fire for its hedging program. they used a mix of swap contracts and put options. some don't like the way the company accounts for hedges. they have a chance to explain the hedging on air. let's talk to mark ellis of linn energy to dig deeper into the story. welcome back to "mad money." >> good to see you. >> before we get to the acquisition, which i praised on air numerous times, no shock to you, andrew berry from town, really nice, writes in an article in barron's that linn doesn't deduct the cost of the derivatives from hedging gains. that suggests cash flow is overstated. does it? >> yeah, jim. we saw that article. a week and a half ago we
11:31pm
actually did our response to that. we put a presentation out there. >> saw it on the web if anybody wants to see it. >> clearly explains how we do that. misunderstandings in the way we deal with nongap accounting. we stand strong behind our hedge. it's critical to the success of our business. it allows to us pay distribution some 28 quarters in a row, and by the way, those are cash distributions. >> no fasbe commentary, no s.e.c. inquiry. >> none whatsoever, no challenge to our nongaap accounting. >> the reason i recommend the stock, is because you do it. too many cowboys that wouldn't be near the 52-week low if they did your hedging program. >> the hedging part is part of the cost of doing the deal. >> you say it up front. >> absolutely. the day we sign the agreement, we lock in hedges as many as five years. we take very little commodity price risk, and manage the operational risk with the types of assets we buy.
11:32pm
we buy mature assets, development drilling, we don't do exploration, so it's very secure. take commodity price out of play and build stability in distribution and you give -- you give the strength also to be able to raise distribution in the future with outstanding operational performance. >> and a series of acquisitions. so people know at home, what you are trying to do, unlike most of the ceos that come on here, you are not making a directional bet on the price of oil. you're just making a bet on the volume you can get and hedging it out so you don't get surprised by a sudden downdraft. >> correct. what we know we don't know is to predict prices. we hedge for five years. the cycle is three to five years. we hedge for five years. not good at predicting prices. >> i thought natural gas was going to go higher except for you. >> last year we bought a lot of gas assets. it allowed us to be more competitive. we buy the margin, lock it in for five years, move on to the next transaction.
11:33pm
>> i want to talk about barry and the bp assets. >> okay. >> barry is a great operator. bp, i will tell you, didn't think that was a great operator. new technology may be using far more oil than we may have thought or has been found so far. >> okay. let me split that in two places. as it relate to bp, high quality assets. well trained individuals that work those assets. the problem there is they just weren't core assets for bp. not spending money. current technology or care and feeding will make them perform better. we're already seeing results and we'll put rigs to work. and berry on the other hand, very talented workforce, as much the assets are important to us, the people that run those assets are critical to us, the knowledge in terms of steam plating in california, which is half the production base there
11:34pm
and about three quarters of the value in this transaction is critical to the success of the deal and very good at what they do. >> david demshur came on the show, telling us about a couple possible prudhoe bay like sized fields. i believe they are in california. do you think california has that possibility and are you anywhere near where some of the big technological finds can be? they all know them. >> they are right in the backyard now we have it. couple of key fields and more mature steam plays are really interesting. we have a tremendous play in a small acreage position. barry has that play figured out. the steam cycles are down to the point where they have optimized production. >> i have been talking about the mismatch. oil where it can't be refined easily. natural gas not being used effectively because of crazy energy policy. do you think any time in our lives, will we have a rational energy policy and be able to be
11:35pm
domestically or continental secure in our energy? >> we have the technology to get there. i would love to see us have an energy policy at some point in time. hopefully we'll get there. >> i got to tell you, again, i want everyone to go to the website, everything is public. not anything i didn't know about linn beforehand. i don't know why anyone is shocked. they are not trying to bet on natural gas going to $7. i don't want to make that bet. they don't either. thank you, mark ellis, president and ceo of linn energy. >> thank you, jim. >> stay with cramer. >> coming up, can you handle the heat? cramer gets you fired up for a searing hot lightning round.
11:36pm
11:37pm
11:38pm
it is time. time for the lightning round. where i tell you to buy, buy, buy, sell, sell, sell. and then when my staff makes this sound the lightning round is over. we'll start with beverly in new york. >> caller: hi, jim. love your show.
11:39pm
i need your opinion on amerigas partners. as a dividend play. >> i didn't like this particular niche of natural gas liquids. but i'm warming up to it. i think you're in fine shape. i say own it. tom in massachusetts. >> caller: yes, jim, tom from cape cod. >> what's happening? >> caller: up 120% on phillips 66, wondering if i should lighten up or get my base back or hold for the long term? >> take out half, let the rest run. i like refiners, but i don't like greed. you be greedy. let's go to grey in california. >> caller: hey, jim. my stock, i notice it's been down like 20 points the last couple weeks. >> come on, we did the fxi a little bit, but we're not messing with the chinese. i got it tell you, their accounting, not crazy about it.
11:40pm
sonny in illinois, please. >> caller: a big stock market rally booyah to you, my friend. love your show, your books. what do you think about a juicy dividend stock called penn growth energy? >> i don't trust these oil trusts, not delivered. not going to go there. i would rather see you honestly in linn co, 401(k), or linn otherwise. richard in kentucky. go ahead richard. you are from kentucky, must be lucky. >> caller: am i on? >> you're on, absolutely. >> caller: a great big kentucky booyah, mr. cramer. >> a university of kentucky on the bubble booyah back to you. >> caller: thank you for your great knowledge and wisdom to us home investors. my shock is ship financial international. >> too risky.
11:41pm
i'm trying to see if baltic dry freight goes up. i would feel better if nordic american tanker does better. but they are not, so i can't stick my neck out. monisha in florida. >> caller: hi, i wanted to check about facebook. >> i like facebook, but, boy, it's -- i am getting faced on this thing. i liked it, low 20s, liked it in the high 20s, does not distinguish my charitable trust. i've been wrong, i believe in the stock, i was right, then i got wrong and now i'm not sure. not sure i'm going to be right that quickly. but i do like the company. let's go to jerry in north carolina. jerry. >> hey, jim. love your show. i want to tell you that right away. hpsi, i have about 200 shares, went down without 18%. >> it has been the era of safeway, harris teeter, kroger and the downfall of whole foods.
11:42pm
i think harris teeter has had a very good run. i would rather be in whole foods. let's go to stacey in colorado. >> caller: hey, jim, it's stacey. >> i had a feeling. >> caller: i'm doing really good, i hope you are too. after getting the ball and chain of apple from wrapped around my neck, i did my homework, did everything and i decided to pick up qualcomm. >> you got horse sense. i interviewed mr. jacobs last week, and they are into samsung and apple, buy, buy, buy, they are mr. 4g. i like qualcomm, certainly more than apple. and that is the conclusion of the lightning round. >> the lightning round sponsored by td ameritrade. coming, healthy habit?
11:43pm
biotech alkermes off to a strong start in 2013 after it raised its guidance for the third time on better than expected sales. could its breakthrough treatments for addiction keep your portfolio healthy? don't miss cramer's exclusive with its ceo. but he's not. ♪ he's an architect with two kids and a mortgage. luckily, he found someone who gave him a fresh perspective on his portfolio. and with some planning and effort, hopefully bob can retire at a more appropriate age. it's not rocket science. it's just common sense. from td ameritrade.
11:44pm
 living with moderate to semeans living with pain.is it could also mean living with joint damage. humira, adalimumab, can help treat more than just the pain. for many adults, humira is clinically proven to help relieve pain and stop further joint damage. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. blood, liver and nervous system problems, serious allergic reactions, and new or worsening heart failure have occurred. before starting humira, your doctor should test you for tb. ask your doctor if you live in or have been to a region where certain fungal infections are common. tell your doctor if you have had tb, hepatitis b, are prone to infections or have symptoms such as
11:45pm
fever, fatigue, cough, or sores. you should not start humira if you have any kind of infection. ask your rheumatologist about humira, to help relieve your pain and stop further joint damage. ♪ let's go. ♪ ♪ ♪ [ male announcer ] introducing the all-new cadillac xts... another big night on the town, eh? ...and the return of life lived large. ♪
11:46pm
listen up, if you are going to speculate on pharma stocks, you don't just want a company that's a one-drug wonder, you want multiple shots on goal. that's why i like alkermes. it is behind the diabetes drug that only needs to be injected once a week. and a monthly injection that helps treat alcoholism and opiate addiction. and they are in partnership with john & johnson. that helps keep people with severe mental illness on their medication which is hard to do. they are working on an extended
11:47pm
release version of abilify. the alkermes version would only have to be injected once a month without making people think they don't need to swallow a pill once or twice a day. rival otsuka is working on a once a month injectable drug that could get fda approval as soon as tomorrow. i'm worried about the competition but the fda approval could be good for them. the company reported a fabulous quarter at the end of january, raised guidance the third time in a row and after spiking up to 23, the stock is below 23. smells like an opportunity to me. let's check in with richard pops. chairman and ceo of alkermes. welcome back. >> good to see you.
11:48pm
>> i want to let viewers in the kitchen. i was very intrigued by the drug we're talking about, this drug that you are working on in phase three, the one otsuka is competing against, the antipsychotic. you wanted to make sure that i knew this rival company could be approved tomorrow. >> tomorrow. >> but a lot of your literature is about how good the drug is. if someone is coming in against you, why is that a focus? would why would you talk about it? >> there's two schools of thought. more competition is better. in the u.s., 2% of patients with schizophrenia end up on long acting medications, despite the fact that data show it's better for them to remember taking their medications each day. in spain, that number is 30%. >> 30%. >> the potential for this market to grow -- >> spain, they don't have any money. >> you save money by keeping
11:49pm
patients out of hospital. we are big fans of them getting approved and getting more doctors and payers in medicaid systems that we should use these medicine. right now, j & j with our drugs. and we will come with our drug, it has its own advantages. we want more patients to get access to these important medicines. >> drugs like abilify. there are always drugs in the market that didn't get big until doctors felt this was worth prescribing. > the reason for lipitor was because everybody was selling statins. wasn't the first. you need a bunch of pharmaceutical companies educating a lot of doctors and payers. >> we understand this is not the end of the world, could be the beginning of the world. >> absolutely. >> one really important thing that you mention as an example. the oral antipsychotic that could be used to augment zyprexa. it's an amazing drug. the best there is. you gain 7% weight almost
11:50pm
immediately. yours does not cause weight gain? >> here is the deal. zyprexa, it's very efficient and for some patients they can gain 50 pounds, 60 pounds. we asked ourselves, is there a way of making the zyprexa without the same metabolic or weight gain liability? because of our work in opiods, and we tested this, and we announced a month or so ago, we are taking this drug into expanded phase two studies. >> that brings me to an interesting point. it seems like have you been able to stem craving. if i take this, will i not be hungry? >> no, in fact, we tested that in otherwise healthy volunteers to see if it would affect food intake. it doesn't. if you take zyprexa, is there is
11:51pm
an intensified desire for food. the volume has been dialled up, and this helps dial it down. >> vivitrol deals with craving. a year ago, we did the criminal justice system trials going on. >> that's right. >> you say that's not driving sales right now. it's personal. >> we think that's the drumbeat in the distance. a year ago, when we first talked about this, there were seven states in the country doing pilot programs in criminal justice. today, 21. drug offenders. or somebody coming out of prison still addicted to opioids and as a condition of parole, be on vivitrol. you will not relapse. it's indicated for prevention of relapse to opioid dependence. >> and same thing with alcohol? >> alcohol is slightly different mechanism. put people have reported the craving comes down. >> now, my doctor is cbs' doctor
11:52pm
and he did a piece recently and said that there were 4,000 people addicted to opiates in 1998. this is the fastest growing addiction in the world. is yours the antidote? >> there are 2.5 million people in treatment for opioid addiction in the u.s. now. >> i'm sorry, yes. >> ten years ago, opioid addiction meant heroin. today it's oxycontin, vicodin, percocet. because you tolerized opioids, you need more and more of a dose to get the high. you will always end up in the criminal justice system, by doctor shopping, buying illicit drugs or moving to heroin. this blocks those receptors in the brain so you know for a month at a time. >> why doesn't everybody know this? >> it's new science. it's always been treated by drugs like methadone.
11:53pm
you never lose your dependence on the opioid. >> every time you are on, i learn more. >> thank you for having me. >> the chairman and ceo of alkermes. more to popularize how hard it is to get drugs through fda. richard, thank you so much. >> thank you, jim. >> stay with cramer.
11:54pm
11:55pm
we call it thesis investing, and i always hated it. when i ran my hedge fund, i
11:56pm
heard these guys that thought they were so smart on air and print and at meetings, talking about top-down economics and shoehorn individual stocks into views from the top down, oh, the economy is negative, let's short this, short that. frankly, it rarely worked and when it went awry, it produced spectacular losses for anyone who attempted these trades. you saw the residue of the thesis playing out on their very screens. the thesis has been the hobbling of the american consumers, higher payroll taxes, higher gasoline prices and dysfunctional behavior in washington. job cutting sequester and delayed tax refunds from the irs, said on the autozone call to total more than $30 billion, all added up to what have been tremendously disappointing earnings to the retailers, the thesis makes since, so easily applied. and right after we were certain, every consumer should have been
11:57pm
blown out by what were referred to as headwinds. how could the retailers duck the headwinds? the thesis investors put on short after short after short to profit from the headwinds and the etfs shorted, the discounters, retailers, and the big housing derivative retailers, and the facts got in the way of the story and the shorts were forced to cover. walmart started off much better quarterly report and some tried to seize on the outlook which was muted. and they were trying to short the spreading of the bad word. let me go to home depot and macy's. two of the powerful retailers, and there was not only spending weakness, but spending might be accelerated. when we last left the dollar stores, it was a total debacle. lots of chatter about declining gross margins, kiss of death. dollar tree reported beautiful
11:58pm
numbers and guidance wasn't blown away, it reported a dramatic increase in gross margins, extraordinary reversal, and believe me, they were lying in wait for these firms, oh, man, 10% gain. and not everyone executing well enough to take advantage of consumer strength. target and lowe's got beaten by the other guys. if there were headwinds, they were from the front door of their stores. jcpenney, gale force winds if you get near their place. lowe's did come roaring back and it's time to circle back and buy both michael kors and whole foods. the facts just refuse to comply, and the consumer refused to listen to the news or realize how poor she had become. she accelerated spending the exact time she was supposed to curtail it. a good short spoiled. stick with cramer. [ male announcer ] this is not my home.
11:59pm
there. i said it. they don't have pictures of my kids. they don't have my yoga mat. and still, i feel at home. could it be the flat screen tv? the not so mini fridge? ♪ the different free dinner almost every weeknight? or maybe, it's all of the above. and all the rest. am i home? nope. but it almost feels that way.